Welfare Rules Databook: State TANF Policies As Of July 1999

Employment-Related Eligibility of Two-Parent FamiliesEligibility of Individual Family MembersInclusion of Noncitizens in the UnitII.C.What level of assets can a family have and still be eligible?Asset TestD.How is income counted in determining eligibility?Countable IncomeIncome and Assets of ChildrenIn-Kind IncomeDeemed IncomeChild SupportEarned Income DisregardsE.How much income can a family have and still be eligible?Income Eligibility TestsDollar Amounts1BenefitsA.III.If a family passes all eligibility tests, what is received?Benefit Computation2RequirementsA.Once determined to be eligible, what must a recipient family do tomaintain benefits?Contracts and AgreementsSchool Policies for Dependent ChildrenImmunization and Health Screening RequirementsChild Support Sanctions3B.What work activities are required?Activities ExemptionsActivities RequirementsActivities SanctionsMinor Parent Activities Requirements and BonusesComponents1The information in the Dollar Amounts category is also relevant to other categories, including DeemedIncome, Income Eligibility Tests, and Benefit Computation.2Most states base benefits on the net income of the recipient. Net income is calculated by determining thegross income of a recipient and subtracting any earned income disregards the state may allow. Therefore, theEarned Income Disregard category is also relevant for benefit determination.3The child support requirements for which a recipient may be sanctioned are included in the Child Supportcategory that is listed under section I.D.4State TANF Policies as of July 1999

IV.Ongoing EligibilityA.How long can a family receive benefits?Time LimitsB.Are children eligible if born while the family receives benefits?Family CapNote: The categories under sections I.B-I.E and II may be relevant toongoing eligibility. In most states, recipients are also required to passnonfinancial and financial tests in order to continue receiving benefits. Thesetests may differ for initial and ongoing eligibility.V.Transition to Self-SupportA.What happens after cash assistance ends?Transitional BenefitsSources of Information for the WRD, and Verification of the DataThe primary sources of information for the WRD (and thus for the tables in theDatabook) are the caseworker manuals and/or regulations used in each state and the Districtof Columbia.4 The Urban Institute has a subscription with each state to obtain the manuals orregulations as well as the ongoing updates to those manuals or regulations. These documentsprovide a consistent source of detailed information on policy changes and implementationdates across states and time.States were given the opportunity to verify all of the 1999 data. Many statesreviewed all of the data for their state, while others focused only on the key data in theDatabook tables. The 44 states that reviewed the complete 1999 data or the Databook tablesare:4Due to the difficulty of obtaining caseworker manuals during the transition from AFDC to TANF, the 1996data in the WRD are coded using several different sources, including (a) caseworker manuals, when available;(b) AFDC State Plans submitted by states to the federal government; (c) waiver terms and conditions; and (d)telephone calls to the states to clarify the implementation dates of waivers.Assessing the New Federalism5

AlabamaIllinoisNebraskaSouth CarolinaAlaskaIndianaNevadaSouth DakotaArizonaIowaNew HampshireTennesseeArkansasKentuckyNew JerseyTexasCaliforniaLouisianaNew YorkUtahConnecticutMaineNorth CarolinaVermontDelawareMarylandNorth ridaMichiganOregonWest ontanaRhode IslandWyomingDue to its historic nature, the 1996-1998 information in the WRD has not been fullyreviewed by state TANF staff, but portions of the data have been verified against selectedsecondary sources.General Points about the WRDThe WRD:6 Contains information on the rules in effect in each state across time. It does not includeinformation on proposals or legislation that has not been implemented. Focuses on welfare rules. The database does not contain information regardingcaseloads, budgets, outcomes, or administrative practices. Contains at least one "record" (a set of coded variables) for each state, year, and categoryof rules.State TANF Policies as of July 1999

Contains additional records when the state changes a policy during the year or when thestate’s policies vary by geographic regions of the state, demographic characteristics of theassistance units, or “component” groups across the state. (The term “component” is usedwhen the state’s caseload is divided into mutually exclusive groups based on multiplecharacteristics.)Indicates when states vary policies by county. For those policies that are determined bycounty, the WRD captures policies for the largest county of the state. Contains one record for every year, state, and category of rules, which is designated asthe “majority rule” record. This record represents the policy that affected the majority ofthe caseload for the majority of the year.One additional issue is important for users of the WRD and the Databook to understand: theWRD does not address the issue of how rules may be implemented in practice. As noted above,the WRD is based on caseworker manuals and/or regulations, which typically do not includeinformation on the likelihood of various outcomes occurring. For instance, if a particular type ofrecipient may be assigned to one of a number of different types of work activities, the manualsdo not typically address the issue of which type is the most likely assignment. Thus, for certaintypes of policies, two states may look quite similar in the database and yet in practice be quitedifferent, and other states’ policies may look quite different and yet be similar in practice.The Tables in This DatabookContent of the TablesThe tables included in this paper are designed to provide readers with easy access to keyTANF policies across states as of July 1999. The first four chapters of the Databook provideinformation as of July 1999 across four broad policy areas: Initial Eligibility, Benefits,Requirements, and Ongoing Eligibility. For selected policies, longitudinal tables include datafrom 1996 through 1999.Assessing the New Federalism7

The data for the tables are extracted from the WRD and only represent a portion of theoverall information in the database. Even for the policy areas addressed in this paper, furtherdetails are available online in the WRD. In general, the Databook tables focus on the "majorityrule" for a particular aspect of policy, while the online database allows exploration of policyvariations across months of the year and/or different subsets of the caseload.Structure of the TablesEach table follows the same general structure and was created using the same set ofgeneral rules. Typically, the body of each table includes one row per state, which represents thepolicies that affect the majority of the caseload as of July 1999. Units comprising the majority ofthe caseload tend to be nonexempt, single-parent units with children.Some tables do include more information than just the rules for the majority of thecaseload. In some cases, the information is represented as an additional row for the state,whereas other types of information are footnotes. Additional data as a second row: A second row is added to the body of the table if astate divides its entire caseload into mutually exclusive groups that are treateddifferently across more than one policy. These groups—termed "components" in theWRD—are usually defined by more than one characteristic, such as "units withchildren under 13 years old who are job ready.” Descriptions of states’ componentsare located in Appendix 1. Additional data as a footnote: Several types of variations may appear as a footnote inthe tables. These include variation by type of assistance unit (two-parent units,applicants vs. recipients) or geographic areas (demonstration projects in a fewcounties vs. the rest of the state). In some, but not all, tables these types of policiesare footnoted. Although the tables do not capture all of the variation in policiesacross regions and types of units, the WRD does contain more of this information.In addition, states that allow counties to vary policy are footnoted. The footnoteindicates which county’s policy is included in the table.8State TANF Policies as of July 1999

Each of the 1999 tables are numbered by chapter and section. For example, Table III.A.1refers to the first table in chapter III, section A. The longitudinal tables are numbered L1through L10.Assessing the New Federalism9

10State TANF Policies as of July 1999

Policies as of July 1999Assessing the New Federalism11

12State TANF Policies as of July 1999

Initial EligibilityAssessing the New Federalism13

14State TANF Policies as of July 1999

I.Initial EligibilityThe tables in this chapter of the Databook describe key aspects of the rules imposed onfamilies and individuals in order to determine initial eligibility for TANF, as of July 1999. Rulesfor initial eligibility apply to individuals who are newly applying or reapplying for assistance.To be eligible, an applicant family must pass both nonfinancial tests based on the demographiccharacteristics of the family and its members, and financial tests based on the income and assetholdings available to the family. This chapter is divided into five sections covering initialeligibility rules related to diversion, family composition, assets, income definitions, and incometests.A.Does the state try to divert some families from becoming recipients?Through state waivers and then after the passage of PRWORA, states began focusingenergy on decreasing their caseloads, as well as encouraging families to be self-sufficient. Tomeet these goals, many states developed policies that attempt to divert from assistance thoseapplicants needing the least amount of state help to become self-sufficient. Two policiesintended to encourage self-sufficiency are diversion and job search at application. Almost halfof the states have created a formal diversion program. Under formal diversion programs,families may choose to receive a lump-sum cash payment to deal with immediate needs insteadof receiving a monthly TANF benefit. Generally the benefits are provided to families in orderfor them to alleviate short-term problems that interfere with either keeping or findingemployment. Families that accept diversion payments are typically barred from applying formonthly TANF benefits for some period of time.Assessing the New Federalism15

About a third of the states have instituted a job search at application policy, whichencourages applicants to find work. These policies require applicants to search for a job eitherbefore or while their application is processed. To be eligible for aid, they must prove that theyhave searched for a job at a set number of businesses. States hope that applicants who may nothave previously pursued employment as aggressively as required by the state will find a job andno longer need assistance.Below is a further discussion of these topics and the tables included in this section.Diversion: Table I.A.1 describes states' formal diversion programs. For purposes of theWRD and this table, a formal diversion program diverts eligible applicants or recipients fromongoing TANF receipt by providing a one-time cash payment paid directly to the family or to avendor for expenses incurred by the family.5 Although some states employ a variety of strategiesto divert applicants from ongoing receipt of cash benefits (such as requiring an applicant toparticipate in job search) only those programs that provide a cash payment or special supportservices are identified as diversion programs in the table.Families applying for a diversion payment must still be eligible for assistance using thestate’s eligibility rules (see sections I.B-I.E). The rules are generally the same for families thatapply for diversion and those that apply for monthly assistance.The table describes whether states provide a diversion payment, the maximum payment,the form of the payment, how often a recipient may receive the maximum payment, the period ofTANF ineligibility after receiving a diversion payment, and whether the diversion payment5The diversion definition for purposes of the WRD would also include any state that provided only support servicesas a diversion payment. This means that the state would provide the recipient with no cash payment but wouldprovide a range of support services, including possibly transportation, child care, etc. In return, the recipient wouldnot apply for monthly benefits. However to date, no state provides only support services as a diversion payment.16State TANF Policies as of July 1999

counts toward the state’s time limit. States conducting demonstration projects that providediversion assistance in a few counties, but not statewide, are footnoted.Related tables: Table L1 indicates whether each state had a formal diversion program inthe years 1996 through 1999.Mandatory job search at application: Table I.A.2 indicates which states require applicantsto search for a job prior to application as a condition of eligibility. Presently, 16 states require anapplicant to seek employment either before or while their application is processed. The jobsearch requirements vary by state, but in all cases if the applicant does not comply with therequirement, the family is not eligible for assistance.B.How does family composition or individual status affect eligibility?To be eligible for either a diversion payment or monthly benefits, a family must passseveral nonfinancial tests based on the demographic characteristics of the overall family orindividuals within the family. States impose several rules on families in order to determinewhether they may be eligible for TANF. At the most basic level, the family must include a childor, in some states, a pregnant woman. If the family includes two parents, some states imposespecial eligibility tests based on the parents' current or prior labor force status. If the head of thefamily is a teenager, she may or may not be eligible to receive a benefit on her own, and in moststates she is eligible only if she is living with her parents or in another state-approved setting.Even when a family passes these tests, some members of the family may not be eligibleto be part of the "assistance unit" (the group of people whose needs are considered inestablishing the benefit). For instance, many states prohibit the inclusion of stepparents in theassistance unit, while other states require their inclusion, and others give the family the option.Assessing the New Federalism17

The degree to which individual noncitizens are eligible to be in the assistance unit also variesfrom one state to the next. States base the eligibility of noncitizens on several factors, includingwhen they arrived in the country, how long they have resided in the country, and their immigrantstatus.Below is a further discussion of these topics and the tables included in this section.Eligibility of pregnant women: Table I.B.1 indicates whether pregnant women who haveno other children are eligible to receive cash assistance through TANF. For those states that doprovide benefits, the table also indicates in which month of pregnancy benefits begin.Two-parent eligibility for applicants: For states providing benefits to two-parentfamilies,6 Table I.B.2 describes any special eligibility rules imposed on two-parent applicantunits where neither parent is disabled ("UP," or unemployed-parent families, in the formerAFDC program).7 The three types of tests that are sometimes imposed include limits on hours ofwork, work history tests, and waiting periods. Under an "hours test," the unit is not eligible if theprincipal wage earner is working more than a specified number of hours per month. An hourstest has the effect of denying eligibility to some two-parent units where a parent works asubstantial number of hours but would nevertheless be financially eligible for assistance, due to alow wage rate and/or a large family size. Note that states may apply this rule when determiningthe initial and/or continuing eligibility of two-parent families.Under a work history test, the eligibility of two-parent units is restricted to those wherethe principal wage earner worked during a certain number of calendar quarters over a specifiednumber of years, or where the principal wage earner satisfies other criteria related to labor force6North Dakota no longer provides TANF benefits to two-parent, nondisabled units.Note that in some states, benefits are provided to two-parent units under a "state-separate" program funded by statemonies rather than the TANF grant. However, the table includes those states as providing benefits to two-parentfamilies regardless of the funding source.718State TANF Policies as of July 1999

attachment. Work history tests exclude families with very young parents who have not had achance to accumulate the necessary calendar quarters of work. They also exclude two-parentfamilies where neither parent has been in the labor force for a few years.Waiting periods restrict the eligibility of two-parent families until a certain number ofdays or weeks after the family would otherwise have been eligible. In other words, under a 30day waiting period, if the principal wage earner becomes unemployed, and the family would nothave been eligible when the parent was working, the family would not become eligible to applyfor assistance until one month after the parent lost his/her job.Related tables: See Table IV.A.1 for details on the hours test for recipients and Table L2for information on the rules for two-parent units in the years 1996 through 1999.Minor parent eligibility: Table I.B.3 describes special eligibility rules for families wherethe parent is a minor (usually defined as under age 18 and never married). The first columnindicates whether a minor parent can ever head a TANF unit and receive the benefit check inher/his own name. The second column indicates whether the state imposes any residencyrequirements on minor parents. In nearly all states, unless exempt due to good cause, a minorparent must live with her own parent(s) or in so

Table IV.A.2 Asset Limits for Recipients, July 1999 112 Table IV.A.3 Income Eligibility Tests for Recipients, July 1999 116 Table IV.B.1 Family Cap Provisions, July 1999 118 Table IV.C.1 State Time Limit Policies, July 1999 120 Ta